All that while state and IRS taxes on profits are increasingly challenging, as refinanced funds for construction in progress aren't deductible expenses, thus not lowering tax bills.All that said, the "snowball quickly" effect you mentioned isn't quite happening yet.

If the condition is similar to the market average but your rent is severely under market rate then I take an average between the current rent and the market rent and send them the following message 2 months before their lease is up (assuming you aren't in a rent control market),Dear Tenant,Some nice words and remind them that their lease is up within 2 months, please select the following options about their new lease, also mention that you are doing the best you can to maintain the rent as low as possible but with inflation, insurance and property taxes increasing, you have to raise the rent to keep up with the rising expenses. 1.

You are converting their tax free gain in to a taxable gain.

50k to 60k gross rental income?

I joined Bigger Pockets to further my investor mindset, connect with other investors, and create passive income through affordable housing! 

Figured there would be a few data points left out of the equation' that I would need to circle back with :) .There are additional units not rented at this time which could be rented to increase the income.

Even if we do know the exact transfer tax, we haven't seen the contract to know if the transfer taxes are being paid by the buyer or the seller or if they are being paid 50/50. 

Passive income How did you find this deal and how did you negotiate it?

I was part of his self-storage income community for a bit.

Do you mind me asking how much you would need to replace your income?